For job seekers, employees, and employers, this is a time of uncertainty. There is lots of news and speculation about what employment will look like in the next ten years. One global leader, the World Economic Forum (WEF) has compiled insights from 803 companies with a combined workforce of over 11.3 million individuals. The findings represent various industries across 45 economies worldwide. The Future of Jobs Survey addresses topics like overarching trends and technological advancements and their influence on employment. It delves into the strategies that businesses intend to employ for workforce transformation between 2023 and 2027.
Dynamics of Job Creation and Loss: Environmental, Technological, and Economic Influences
The report suggests that the most significant impacts on job creation and loss originate from environmental, technological, and economic trends. Among these overarching trends, the report highlights the strongest positive impact on job creation from investments supporting environmentally friendly transitions, wider implementation of ESG (Environmental, Social and Corporate Governance) standards, and a shift towards localized supply chains. However, these new roles will likely be balanced by some job displacement. Additionally, adaptation to climate change and demographic changes in developing economies are also anticipated to generate job growth.
Technological progress, particularly through adopting new technologies and enhancing digital accessibility, is projected to drive job expansion in more than half of the surveyed companies. Nevertheless, the WEF estimates around one-fifth of companies expect job displacement due to technological advancements.
McKinsey & Company adds that automation could displace approximately 400 to 800 million jobs by 2030. This might necessitate up to 375 million individuals to completely transition to different job categories and learn new skills.
According to the Future of Jobs Survey, the three main factors contributing to expected net job loss are slower economic growth, supply shortages, rising input costs, and increased consumer living costs. Employers also acknowledge that heightened geopolitical divisions and the ongoing ramifications of the COVID-19 pandemic will influence labor market disruptions. There is an equal split between employers who view these trends positively for job impact and those who anticipate adverse effects on employment.
History has shown us that repeatedly traditional human-led roles disappear and are substituted by automation, outsourcing, and self-managed teams. Whether it is the invention of the automobile or the Gutenberg press, human ingenuity prevails. As per LinkedIn experts, many roles that students of today will engage in by 2030 are yet to be created. Many of these future jobs will originate from emerging technologies, including drones, alternative energy, autonomous vehicles, and advancements in cryptocurrencies and blockchain.
Growing and Declining Jobs
AI and Machine Learning Specialists are leading the list of fast-growing jobs, followed by Sustainability Specialists and Business Intelligence Analysts, with most rapidly growing roles being technology related. A recent report by Deloitte also adds that two influential factors are shaping the future of work: the increasing integration of artificial intelligence in workplaces and the broadening of the workforce to encompass both on- and off-balance-sheet talents. Conversely, clerical and secretarial roles dominate the fastest declining positions, including Bank Tellers and Related Clerks, Postal Service Clerks, and Cashiers and Ticket Clerks.
Top 5 new jobs, 2023-2027:
- AI and Machine learning Specialists
- Sustainability Specialists
- Business intelligence Analysts
- Information Security Analysts
- FinTech Engineers
Top 5 jobs likely to be replaced through technology, 2023-2027:
- Bank Tellers and Related Clerks
- Postal Services Clerks
- Cashiers and Ticket Clerks
- Data Entry Clerks
- Administrative and Executive Secretaries
The report also outlines that employers are expecting 69 million jobs to be created in the next five years, while 83 million positions are projected to be phased out. This amounts to a 2 percent reduction in the existing workforce, equaling 14 million jobs. What does all this mean to job seekers, employees and soon-to-be graduates? The dynamic landscape of work has been evolving since humans lived in communities and shared resources.
The 2023 World Economic Forum's The Future of Jobs Survey findings highlight the crucial balance between environmental shifts, technological advancements, and economic influences in job creation and displacement. Employees who will thrive in this new workforce have a growth mindset embrace emerging technologies and nurture resiliency and adaptability to navigate the challenges brought by automation. To successfully navigate this evolving job market, job seekers must embrace technological advancements and stay adaptable. Upskilling and acquiring digital skills can help employees and job seekers remain competitive and versatile in emerging industries.
The landscape of employment is undergoing a profound transformation. The importance of role design, talent attraction and development and talent mobility have never been more important to business. Job seekers should look for employers who invest in professional development, upskilling, reskilling, cross training and technology-first processes, all designed to place agile individuals at the core of the evolving work landscape. It’s an exciting time to be in the workforce.
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